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Operations Management – BIM (TU) Question Paper 2014 | Sixth Semester

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Operations ManagementTribhuvan University | Faculty of Management
BIM / Sixth Semester / MGT 205: Operations Management
Year: 2014 (2071)

Full Marks: 60 | Time: 3 Hrs
Candidates are required to give their answer in their own words as far as practicale.

Brief Answer Questions: [10 X 1 = 10]
1. Define productivity with example.
2. Write the difference between effective capacity and actual capacity
3. Mention four benefits of fixed position layout.
4. Differentiate between preventive and breakdown maintenance.
5. Give the concept of waiting line system.
6. Write four things that have to be considered in layout design.
7. List down the name of quality management tools.
8. What is the importance of linear programming problem?
9. Write the difference between balking and reneging behavior on a queuing system.
10. What is the importance of Kaizen system in the organization?

Group “B” – Short Answer Questions: [6 X 5 = 30]
11. What is business plan? Describe aggregate output planning and master production scheduling with their importance in business.
12. Explain different manufacturing process technologies used in industries with example.
13. What is inventory management? Discuss its significance in brief.
14. A construction company moves materials between three plants and three projects. Project A requires 140 truckloads each week, project B requires 200, and project C requires 80. Plant W can supply 120 loads, plant X can supply 160 and plant Y can supply 140. Using the cost information (in Rs.) given in the following table, compute the optimum transportation cost.

FromTo Project ATo Project BTo Project C
Plant W549
Plant X435
Plant Y742

15. Four different airplanes are to be assigned to handle three cargo consignments with a view to maximize profits. The profit matrix is as follows (in hundred ruprees)

AirplaneCargo Consignments

Find out the optimal assignment plane.

16. A machine in manufacturing mica disc with specified thickness samples of size 4 are drawn every hour and their thickness in units are recorded as follows:

Sample No.Thickness of Mica Disc (1 unit = 0.001)

For the above data, draw a mean chart and range chart. (For n = 4, A2 – 0.729, D4 = 2.282 and D3 =0)

Group “C”
Comprehensive answer questions: [4 X 5 = 20]

17. Read the following case carefully and answer the following questions.
Everyone knows about Cadbury and what it represents. The Cadbury Masterbrand is the flagship for a variety of well-known distinctive products including Flake, Dairy Milk, Crunchy and Roses. Each of these products has its own place in the public imagination because we have grown up with them and they have associations for us with events in our personal histories. Since 1990, Cadbury has developed and implemented an expanding program of presence marketing as an effective way to promote the Cadbury Masterbrand in the UK. The strategy has been to select high profile sites in theme parks, shopping malls and airports to communicate Cadbury values and increase the availability of products.

The pilot Café Cadbury was opened on 8th October 2000 in an attractive three-story 18th century Georgian building in the Centre of Bath, a busy tourist destination and World Heritage City. The location was carefully chosen to position the new brand as premium experience for the discerning customer. Café Cadbury is an exciting all day premium café and gift experience also offering a take-out service on the ground floor.

Brand values are those things that a particular brand stands for – eg. reliability, quality, etc. In selecting values for Café Cadbury, a prime consideration was to select values which reinforce the message to customers ‘choose Cadbury’. The key values are:

Premium – A premium catering and shopping experience for indulgent chocolate and non-chocolate products in a quality environment.

High quality – The best coffee, unique cakes and fresh baguettes.

Friendly service – Café Cadbury staff are trained to treat customer as guest and to welcome them from the first minute they enter the Café.

Novelty – The emphasis in product development at the Café is on innovation eg. Spiced chocolate or a full size chocolate football.

Celebrating Cadbury Chocolate – A variety of dark chocolate is used, but all of the milk chocolate delivers the real taste of Cadbury’s chocolate.

Adult appeal – The emphasis is on catering for adult taste, but because children love Cadbury’s chocolate they are also provided for with a children’s meal packed in Yowie gift box.

Relaxing – The Café provides a relaxing atmosphere as a result of the friendly service, the interior decoration and general ambience.

Contemporary – The design and atmosphere of the Café is modern, innovative and dynamic.

It is essential to have a clear picture of the type of people that make up your core target market. Armed with this information you can then select how to best reach and appeal to this market. Following Cadbury’s research into the Gifting market, the company analyzed market research into the coffee bar and café markets. Cadbury’s then carried out its own research which confirmed that the café concept would particularly attract ABCI women aged 25-45. Knowing the target market, Cadbury was then able to research the right locations to attract 25-45 year old females with high disposable incomes who were regular café users. The building required a prestigious location and character to support the luxury and indulgence of the experience. Getting this right was vital because retailing and catering support each other, for example: the customer’s experience of high quality, indulgent catering reinforces the premium image of the retail products they buy restaurant-quality cakes and chocolates can be sold at higher prices in this atmosphere when customers try products in the café’s seating area or Cadbury Lounge, they may wish to buy them as gifts and take home purchases. Cadbury’s aim is for customers to aspire to eat and shop in Café Cadbury, so the view of the shop frontage is important. A double frontage is ideal so that people can see, at a glance from the street, the range of products and services by looking in. Outside seating also draws attention to the food and drink offer.

Design is always important. The design of Café Cadbury seeks to make sure that customers enjoy a unique, shopping and catering experience as they make their journey around it from entrance to departure. Efficient links between back of house facilities, support and the front of house are needed to fulfill the needs of customers. Once the customer enters the retail are, the counter and its displays are clearly visible serving both the retail and takeaway products. The counter is designed to appeal to adults and is sophisticated and modern, made of warm cherry timber and trimmed in clean stainless steel. As the customer walks over the timber floor, their footsteps add to the hard-edge, busy sound in this part of the Café Cadbury. The customer moves on the browse the retail display fixtures. These show premium chocolate and non-chocolate offers.

Café Cadbury is not run by Cadbury. Instead Cadbury pays a fee to an independent operator to run and staff Café Cadbury. This means that Cadbury are able to control the quality of the café without being drawn into the day-to-day operation. An Operator’s Agreement was drawn up which includes the performance criteria which guarantees that the café will meet with the objectives established by Cadbury.


a. Discuss the location factors that are important in selection of new location for a Café Cadbury.
b. Explain the factors that are considered as the vital units for the management of quality of a product?
c. Who has benefited from the operational strategies of the Cadbury? Explain.
d. What operational environment (internal & external) should be considered to compete in the global market? Why?

Posted By : Hari Prasad Chaudhary | Comment RSS | Category : Bachelor Level, Tribhuvan University
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